NEWS

The North America Free Trade Agreement, NAFTA, has been constantly in the news for the past year. Canada, the US and Mexico have been renegotiating the trade agreement that came into force in January 1994. While there have been changes and updates to NAFTA over the past three decades, from the sound of things the current negotiations will likely lead to major changes.

As a trade agreement, NAFTA contains provisions related to trade between these three countries, but it also includes provisions that allow citizens of the countries to work in any of the other three countries. The goal of these provisions was to make the flow of workers easier and thereby facilitate trade between the three countries. For example, based on the latest figures available, in 2016 Canada granted work permits to 17,602 Americans and 691 Mexicans under NAFTA professional provisions. In the same year, the US issued 14,768 NAFTA professional visas to Canadians and Mexicans.

NAFTA has a number of provisions that allow for the movement of people including Intracompany Transfers, Treaty Traders or Investors as well as educated professionals. For example under the professionals category, educated Canadians, Americans and Mexicans in 63 occupations can obtain work permits for up to three years to work as engineers, accountants, lawyers and so on. Under NAFTA, citizens may apply to work in any of the three countries, as long as they have a qualifying temporary employment offer. This process is much easier and faster than the process that a citizen of another country would face to secure work authorization and enter the North American workforce.

Professionals under NAFTA must fall under one of 63 occupations listed in the current NAFTA provisions. This list was created before the rise of the digital era and therefore does not include many high demand occupations. Therefore, the NAFTA negotiations are an opportunity to update this occupation list. However, the current NAFTA negotiations and the general anti-immigrant political climate in the US will not only make it difficult to update this list but there is talk that the professional provisions may be removed entirely, putting the status of tens of thousands of Canadians, Americans and Mexicans in jeapordy.

Unfortunately it is not clear what will happen to professionals if NAFTA negotiations breakdown and the US withraws from NAFTA. The good news for Canadian businesses that hire American and Mexican workers is that they may be able to apply for authorization and work permits for their employees under other programs such as the global talent stream. However, the fate of Canadians and Mexicans in the US is less clear, particularly with the strong competition for existing professional work permits and we may see thousands of Canadians returning home to Canada, reversing the general trend over the past few decades of Canadian talent leaving for the US. While the negotiations and talk of trade wars continue it is impossible to predict what will happen but we can hope that cool heads prevail and the provisions are saved and updated to allow for many more decades of prosperous trade and free movement of work between the three countries.

Over the last two weeks I have written about the possibility for Canadian businesses to hire foreign workers in Canada when they face a labour shortage. This week I am writing about the case of a special category of employers: families that want to hire a foreign caregiver to work in their home to look after children or a family member with high medical needs.

As with all other visa and immigration categories, the caregiver category has changed greatly in recent years. A few months ago I wrote about changes that would impact the ability of caregivers already in Canada to be able to obtain permanent residence. But what can you do if you want to hire a foreign caregiver? Here are answers to your top three questions as you consider whether and how to hire a foreign caregiver:

1- Can I hire a “live-in” caregiver or nanny?You cannot require that the caregiver must live with you or the family member that they are looking after. However, it is possible for the caregiver to agree to live with you or the family member that they are caring for. If you come to an agreement with your caregiver for her or him to live in your home, you must:

provide accommodation in the form of a private bedroom that is furnished

the bedroom door must have a lock and safety bolt on the inside

the bedroom must meets the municipal building requirements and the provincial / territorial health standards

you cannot charge the caregiver for room and board for the accommodations

2- What is the process for hiring a foreign caregiver?In order to hire a foreign caregiver, you must be meet the following requirements:

Demonstrate that you want to hire someone to provide care on a full-time basis (minimum 30 hours per week).

Demonstrate that you want to hire someone to work in the private household where the care is being provided.

Prove that you have eligible individuals requiring care (either that your children are under 18 or that your family member has high medical needs).

Prove that you have the financial ability to pay the caregivers' wages. You will be required to provide your Notice of Assessment as part of the application process.

Prove that have conducted recruitment and advertisement in Canada to try to find a caregiver in Canada before looking for a foreign caregiver.

If you meet these requirements you can submit an application to Employment and Social Development Canada and if your application is approved you will be able to apply for a work permit for your foreign caregiver.

You should also note that once your caregiver is in Canada you must comply with all the requirements of the Ontario Employment Standards Act that sets out the rights that employees have including minimum wage, overtime pay, public holidays, severence pay, and various kinds of leave such as pregnancy leave, medical leave, and so on.

3- What costs are associated with hiring a caregiver?The process of hiring a caregiver can be complex as described above. It also requires payment of at least the following costs:

Employer Compliance fee: $230

Labour Market Impact Assessment application fee: $1000 (this is waived if your total family income is below $150,000)

Advertising costs: there may be some costs associated with advertising for 4 weeks before we can submit the application (this is one of the trickiest parts of the application)

Work permit application fees: $155

If biometrics are required: $85

Transportation costs for the caregiver to travel to Canada for your caregiver

Private health insurance for the first three months before your caregiver becomes eligible for health insurance in Ontario (this will differ in other provinces)

Work place safety insurance for your nanny as a monthly premium

You should also note that you are required to provide compensation for your caregiver at the prevailing wage in the area you live. For example, the median wage in Toronto is $14 per hour and you will have to offer the same to a caregiver you wish to employ in Toronto.

Given the complexity of the process and costs involved you should speak with a specialized immigration lawyer to evaluate your chances and create the best path for bringing a caregiver for your family to Canada.

There are more than 300,000 temporary foreign workers (“TFW”) in Canada employed across the country in different positions. In order for these individuals to work in Canada they must hold a valid work permit or benefit from an exemption that permits them to work without a work permit. If you are a business owner interested in hiring a TFW the process can be very complex, especially given that hiring a TFW is regulated by Employment and Social Development Canada (“ESDC”) with a rigorous compliance regime for employers.

​If you are looking to hire a TFW to fill a labour shortage because you have not been able to find a Canadian citizen or permanent resident to fill the position, then your business will need to proceed under the Temporary Foreign Worker Program. This program addresses genuine labour shortages in Canada and is intended for employers trying to fill jobs in cases where qualified Canadian citizens or permanent residents are not available.

Below are five questions you should carefully consider when starting to navigate this interesting but difficult process:

1- What kind of position do you want to hire for? The process of hiring a TFW will start with an understanding of the position you are looking to fill in your business. Are you looking to fill a highly technical position and you have not been able to find anyone with the necessary training or experience in Canada? Or are you looking to fill a low-skill position but cannot find permanent residents or Canadian citizens to fill the position because there is a shortage of low-skill workers in your area?

These types of situations typically require you to apply for a Labour Market Impact Assessment (“LMIA”) from ESDC based on the shortage of labour in the local market. With the LMIA you can then apply to hire a TFW from outside of Canada.

2- Have you made adequate efforts to hire a Permanent Resident or Canadian first?In order to be permitted to hire a TFW, your business will first need to demonstrate that you have made adequate efforts to hire a PR or Canadian citizen for the position. This is a mandatory step that takes at least one month. Your business must advertise the position in the Canada Job Bank and also undertake a number of other recruitment activities targeted towards hiring PRs and Canadian citizens. If this step is not correctly implemented your business will not be able to hire a temporary foreign worker.

There are some occupations where there is an exemption from the advertising requirement. If one of these exemptions applies to your business or the position you are hiring, then it is not mandatory to demonstrate your recruitment efforts in Canada.

3- Is your business eligible to hire temporary foreign workers?If you are looking to hire a TFW your business must be economically viable and demonstrate that it is able to pay the salary expenses related to the TFW without reducing your existing work force. Your business must typically provide documents to show its legal status (e.g. incorporation documents) as well as its financial health (e.g. tax returns and payroll documents for existing staff members). Depending on the circumstances of your business you may be asked to provide additional documents such as a commercial lease agreement or major contracts for the business.

4- Are you ready for when the TFW starts working? Going through the application process to hire a TFW can be challenging, particularly for the first time. But the process is not over when the TFW receives his or her visa and starts working for you. When you apply to hire a TFW you undertake to pay the employee at a particular wage to perform specific job duties and under certain work conditions. There are rules and formula that determine the minimum wage based on the job description and place of employment. For example a graphic designer will have to be paid at least $35.90 per hour if employed in Toronto but in Fredericton, New Brunswick the employee could be paid $30.77 per hour.

You are required to meet these conditions throughout the term of employment of the TFW. For example you cannot reduce the TFW's wages or require them to work for more hours than what you initially requested. This is monitored through various inspections and check-ups from ESDC to ensure your performance. Therefore, it is extremely important that you understand your obligations when you are preparing and submitting your application because there is a requirement for ongoing compliance and there are consequences for the business if you are found deviate from your initial job offer. And you should make sure you have a compliance program in place to be able to track your progress and be able to respond to any requests from ESDC.

5- Is there any way to hire TFWs without applying for an LMIA?Yes! There are opportunities to hire temporary foreign workers who are already in Canada and who hold an open work permit. The biggest group of open work permit holders are those who have graduated from an eligible post-secondary program and hold a post-graduate work permit. Those with an open work permit can be hired to legally work for you without the need for an LMIA. There are some other exceptions for when you can hire a TFW without an LMIA such as if the person is exempt under a free-trade agreement such as NAFTA to work as a professional or is a high-level executive that is being sent to your business in Canada as an intra-company transferee from a parent or subsidiary company outside Canada. Given the range of options available it is best to seek the advice of an immigration lawyer to assess the best way for your business to proceed.

And don't forget that many of the TFWs that work for you may soon become eligible for permanent residence. Your investment of time and money in hiring a TFW will no doubt pay off when he or she becomes a permanent resident of Canada is an ideal candidate to permanently join your team.

Note: This information is not intended as legal advice or opinion. You should always seek specialized legal advice with regards to your situation as the facts of each case are unique and the application of law varies in every case.